XML 34 R17.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Discontinued Operations | 12 Months Ended
--- | ---
Dec. 30, 2017
Discontinued Operations |
Discontinued Operations | On September 5, 2017, the Company completed the sale of its operating assets that were used with the Company's quality verification program testing and analytical chemistry business for food and food related products (the "Lab Business") to Covance Laboratories Inc. ("Covance"). In consideration of the Lab Business sale, the Company received $6.75 million from Covance and additional cash consideration of $0.8 million is currently held in escrow to satisfy any potential indemnification claims by Covance. The Company was also eligible to receive an additional earnout payment from Covance in an amount equal to up to $1.0 million, tied to 2017 revenue of the Lab Business. However, 2017 revenue of the Lab Business came up short of the required threshold and this contingent consideration was not earned. The Company recorded a gain of approximately $5.5 million from the disposal.
(A) Consideration received |  |  |  |  | (C) Carrying value of the Lab Business |  |  |
|  | Amount |  |  |  | Assets disposed |  | Carrying value |
Cash payment |  | $ | 6,750,000 |  |  |  | Leasehold improvements and equipment, net |  | $ | 1,427,000 |
Cash payment held in escrow (1) |  |  | 750,000 |  |  |  | Prepaid expenses |  |  | 11,000 |
Additional earnout payment |  |  | - |  |  |  | Deposits |  |  | 20,000 |
|  | $ | 7,500,000 |  |  |  |  |  |  |  |
|  |  |  |  |  |  | Liabilities disposed |  |  |  |
(B) Selling costs |  |  |  |  |  |  | Deferred revenue |  |  | (7,000 | )
|  | Amount |  |  |  | Deferred rent |  |  | (215,000 | )
Legal |  | $ | 428,000 |  |  |  |  |  |  |  |
Financial consulting |  |  | 250,000 |  |  |  |  |  |  |  |
Other |  |  | 118,000 |  |  |  |  |  |  |  |
|  | $ | 796,000 |  |  |  | Net assets |  | $ | 1,236,000 |
Gain from disposal (A) - (B) - (C) |  | $ | 5,468,000 |  |  |  |  |  |  |  |
(1) $750,000 is expected to be held in escrow until March 2019 to satisfy any indemnification claims. |
The sale of the Lab Business qualifies as a discontinued operation as the sale represents a strategic shift that has (or will have) a major effect on operations and financial results. The results of operations from the discontinued operations for the years ended December 30, 2017, December 31, 2016 and January 2, 2016 are as follows:
Statements of Operations - Discontinued operations |  |  |  |  |  |  |  |  |  |
Years Ended December 30, 2017, December 31, 2016 and January 2, 2016 |  |  |
|  | 2017 |  |  | 2016 |  |  | 2015 |  |  |  |
Sales |  | $ | 2,820,631 |  |  | $ | 5,146,438 |  |  | $ | 4,129,254 |  |  |  |
Cost of sales |  |  | 2,478,827 |  |  |  | 3,615,840 |  |  |  | 3,182,851 |  |  |  |
Gross profit |  |  | 341,804 |  |  |  | 1,530,598 |  |  |  | 946,403 |  |  |  |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales and marketing |  |  | 482,134 |  |  |  | 692,376 |  |  |  | 818,920 |  |  |  |
General and administrative |  |  | 150,171 |  |  |  | 178,446 |  |  |  | 215,220 |  |  |  |
Operating expenses |  |  | 632,305 |  |  |  | 870,822 |  |  |  | 1,034,140 |  |  |  |
Operating income (loss) |  |  | (290,501 | ) |  |  | 659,776 |  |  |  | (87,737 | ) |  |  |
Nonoperating income (expense): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense, net |  |  | (24,639 | ) |  |  | (36,366 | ) |  |  | (45,791 | ) |  |  |
Nonoperating expenses |  |  | (24,639 | ) |  |  | (36,366 | ) |  |  | (45,791 | ) |  |  |
Income (loss) from discontinued operations |  | $ | (315,140 | ) |  | $ | 623,410 |  |  | $ | (133,528 | ) |  |  |
The assets and liabilities that are classified as held for sale as of December 31, 2016 are as follows:
|  | Dec. 31, 2016 |
Current assets held for sale |  |  |
Prepaid expenses |  | $ | 18,315 |
Leasehold Improvements and Equipment, net |  |  | 1,333,203 |
Deposits |  |  | 19,675 |
Total assets held for sale |  |  | 1,371,193 |
Deferred rent |  |  | 184,766 |
Total liabilities held for sale |  | $ | 184,766 |
Depreciation, capital expenditures and significant noncash investing activities of the discontinued operations for the years ended December 30, 2017, December 31, 2016 and January 2, 2016 are as follows:
|  | 2017 |  |  | 2016 |  |  | 2015 |
Depreciation |  | $ | 169,250 |  |  | $ | 254,755 |  |  | $ | 234,010 |
Purchase of leasehod improvements and equipment |  | $ | 111,232 |  |  | $ | 313,842 |  |  | $ | 190,632 |
Noncash investing activity |  |  |  |  |  |  |  |  |  |  |  |
Capital lease obligation incurred for the purchase of equipment |  | $ | - |  |  | $ | 156,655 |  |  | $ | 303,933 |
Retirement of fully depreciated equipment - cost |  | $ | 55,947 |  |  | $ | 76,050 |  |  | $ | 119,888 |
Retirement of fully depreciated equipment - accumulated depreciation |  | $ | (55,947 | ) |  | $ | (76,050 | ) |  | $ | (119,888 | )

X
- References No definition available. + Details
Name: | cdxc_DiscontinuedOperationsAbstract
Namespace Prefix: | cdxc_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
Name: | us-gaap_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration